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The report also claims that 500 million 1p and 2p coins fall out of circulation every year and the Royal Mint has to replace them.

The £50 note is an unpopular note as its use in routine purchases is rare and people perceive them to be used mainly in criminal activities, according to the government.

Many places refuse to accept them altogether.

2p and 1p coins could be scrapped

The report states that there has been a much more significant decline in the use of cash for transactions that are less than £5 compared to higher-value transactions. This has been particularly true in transport, vending and the pub, restaurant and night-time economy.